Crude gains 94 cents, breaks $50 in early trading

Posted on: May 26, 2016

"Buy the rumour, sell the fact, buy the dip" was the theme of yesterday in the crude market. WTI rallied early as API numbers on Tuesday afternoon were bullish. Once the EIA report printed the curve sold off, as producer hedging was strong throughout the day.

After touching a $48 handle, the buying resumed pushing the front month toward $50 which it has broken this morning. SW remains tight as producers lock in their light oil differentials.